Netflix is no way less than a leader of the video streaming industry which has become a rage among the young viewers. Netflix began this journey as providing the DVD-by-mail business in 1997 but today Netflix has a customer base of 118 million paid customers. Forget about the world just in the United States it has more than 50% of families among the nation are using the services of Netflix. But how come Netflix gained so much popularity? What makes Netflix the leader of this business.

In 1998, Netflix introduced a web-page. Also, the platform evolved its services to a “monthly rental” from a ‘Pay per rental’ mode global video streaming business magnitude was worth USD 42.60 billion in 2019 and is stated to increase at a compound annual growth rate (CAGR) of 20.4% between 2020 to 2027. Inventions, like blockchain technology and Artificial Intelligence (AI), to enhance video quality are stated to encourage market growth. AI has its importance and contribution in, cinematography, script-writing, dubbing, editing, and in other aspects of video production and upload.


  • In 2019, Netflix is the most preferred video streaming platform in the United States, Netflix is leading the business, with 61.04 million subscribers.
  • Brazil is just below the United states with 15 million.
  • The United Kingdom, Mexico, and France are at the 3rd, 4th and 5th positions.
  • Latin America in particular is an evolving market for the SVoD provider, and subscriber numbers in the region hit 793 million in the first quarter of 2020.
  •   Revenue in the Video Streaming (SVoD) segment is expected to touch US $27,143 M in 2020.
  •  Revenue is going to show an upward trend in the annual growth rate (CAGR 2020-2024) of 4.1%, resulting in a predicted market volume of US $31,877 M by 2024.
  • User penetration will be 15.9% in 2020 and is all set to hit 17.8% by 2024.

netflix users in usa

What is Video on Demand?

VOD is a system by which the users can select their desired video content such as TV shows, web series or movies and watch these as per their comfort and chosen time rather than watching it as per on-air broadcasted time. All you need to do is just plug in the device.


How does video-on-demand work?

Video on demand allows users to select and watch movies, Web series, TV shows and other video content at any time they choose and on whichever device they choose. To avail video on demand, content needs to be stored on a video server within a digital data format. Just when a user chooses a specific video content , it gets compressed and dispatched through an Internet connection, When it reaches the target user’s device it once again gets decompressed and decoded into its original state.


How does video on demand work vs. traditional cable TV?

When it comes to traditional cable TV, video content is compressed, digitized and sent via Internet or cable networks. But here is the catch, traditional programming is facilitated on a schedule planned by the cable facilitator – users never had any choice in terms of time preferences or content selection, it was completely dependent on cable facilitator.

How does video-on-demand work with user control?

As video on demand caters and outlet video to a user’s device, users are allowed to stop, , rewind, pause and fast-forward the video – this feature was never available in existing traditional TV programming.

How does video on demand cater to the hospitality industry?

The hospitality industry has always been keen to use video on request as a contending differentiator, facilitating customers with a more personalized viewing experience. VOD can be perceived as a revenue stream in this industry, allowing them to charge the users for their choice of premium content.

How does video-on-demand work for mobile devices?

Services that offer video on demand for mobile devices transfer content wirelessly to the prescribed mobile device, tablets and several devices, accommodating the content as per the device specifications to better the viewing experience, enhance system performance and lessen the impact on network resources.

Revenue in Vod:


The Subscription Video On Demand there is a fixed tariff which is the subscription fee to be paid by the customers. So users will be able to watch the entire range of video content only when the user has paid the subscription fees.
There are generally several types of subscriptions like basic, semi-premium and premium. A user can decide to choose the type of the subscription as per his choice.


Transactional Video On Demand model does require any fees at the time of login.In this model the customer pay a fee as per their choice of series or movies they wish to watch.


Ads Supported Video On Demand is basically an advertising centric digital video service that is being offered free of cost to the users.

Featured listing:

Any specific latest content that has been just added on the online platform can be boosted and encouraged easily by showing short trailers or posting it in a different manner that it can grab the user’s attention. The application provider can ask for a certain extra amount for that latest premium offering.


Completely relying g upon the user’s interest or downloads, several advertisements can also be showcased on the digital content which leads to monetization.



Basic Features of VOD App like NetFlix

  • Register/ Sign Up
  • Mobile Number Verification
  • Manage Profile
  • Recently Added Shows/Movies/Series
  • My List
  • Films List
  • Similar program
  • Trending Now
  • Series List
  • Notifications
  • Search(by title, people Genre)
  • Filter shows (/Suggested shows Years/A-Z/Z-A)
  • My Account
  • Manage payment and billing details
  • Manage Language
  • Redeem gift card/ promo code
  • Update/Upgrade subscription plans
  • Subtitle appearance settings
  • Like/Dislike shows
  • Login
  • Manage Customers
  • Manage Shows
  • Manage Movies
  • Manage Episodes
  • Manage Program Categories
  • Hollywood/Bollywood/Horror/Suspense etc)
  • Manage Trailers
  • Manage Genre
  • Advanced Analytics and Reports
  • Manage subscriptions
  • Manage CMS
  • Manage Notifications
  • Manage Payments
  • Manage Languages
  • Manage Gift Card/Promo codes
  • Manage settings
  • Manage Filters
  • Manage Featured programs
  • Manage Downloadable shows



Additional Features of the Streaming Application:

In order to avoid unwanted business risk, it is crucial to invest for MVP development instead of investing in a complete solution. A theoretical perspective on application improvement will help in comprehension and organizing the required application advancement highlights. MVP is created with the most essential component to check whether the item can support the market or not.

Main fundamental features of an on-demand video streaming application are as follows:

Login and Sign Up:

Simplified registration for users and login process is a significant characteristic of any given video streaming application. Customers can sign up on the application with their email address or phone number and get their login credentials. Afterward, the user logs in using their rendered credentials and can easily access the application content and features.

social signup on netflix app
Online Video Streaming:

The video streaming platform has to provide and facilitate content in real-time as it is happening so the live video streaming is a vital feature when it comes to sports events, entertainment awards like Oscars and specific live tv shows, news broadcast etc.

Secured Transaction Model & Payment Gateway:

In order to ensure data security and privacy of the customers, a video streaming app has to have secure and protected payment options which are not vulnerable. This will ensure the customers so that they can securely make the subscription payments without worrying about the security concerns. A platform must offer many payment alternatives as it would eventually increase the number of users as well.

Multiple language Support:

Multiple language support is like a bonus feature for a video streaming platform. Using this feature, customers can watch the content in their native or preferred language.This feature allows users to personify their viewing experience.

Support for various devices:

A smart app must offer multi-device assistance. It is a vital feature of a video streaming app and it should support several devices such as PC, iOS devices, Android phones, Smart TV, etc.

User Profile:

Customers can customize their profile and modify the details as per their choice and interests like their preferred movie actor, favourite movie genre, TV program, documentary genre, etc.

netflix application development
Smart Search:

Customers can surf or go through the available content of the application to look for their choice of movies, TV shows and sports events. Using the filter one can separate their choice of content on the basis of , country, genre, language, etc.

Make a playlist for your preferred videos:

The video playlist feature allows the users to pick out their preferred movies and shows to customize their own video playlist.


One can alter the app settings and video streaming choices with several controls like subtitle on/off, volume,skip, play/pause etc.

Review & Rating:

For an advanced and reliable video streaming platform, rating & review feature has to be there in order to showcase users evaluation of the content. Users prefer to choose movies and TV shows based on other viewer’s ratings and reviews.



Advanced Features :

For better user experience and user-engagement, the following additional features can be implemented in a video streaming app.

Watch Videos Offline:

Videos can be downloaded by the users so as to watch it whenever and anyplace without an internet connection. This component permits users to watch their preferred shows without being online.

The playlist can be shared with other users:

The customers will relish the video streaming services if they are allowed to share their choice of TV shows and movies among their friends. The aforementioned feature let the users share their chosen playlist with their contacts or known ones. These contacts could be either within the app or could be using different social platforms.

Social Login/Signup:

Social media login is a simple feature that permits users to sign in to the application with their respective social media accounts. It is a simple but quite useful way as all the user information is sync via their social media accounts.

Social Login Signup on netflix app
Blocking on the basis of Geo-location:

There could be several shows or content that could be considered sensitive or inappropriate in all the regions or locations or countries. Hence by using the geo-blocking feature, the content can be restricted accordingly in specific areas.

Video Resolution:

The video resolution can be set accordingly by the user as per their internet speed. One can choose to watch the content in low resolution at a time when the internet connection and speed is inconsistent.

Push Notifications:

This feature prompts users about their subscription time validity, several discount offers, latest shows, upcoming shows and movies.

Below are the key features of advanced applications like Netflix :

  • First-rate streaming
  • Incomparable content
  • Ad free movies
  • Regards for the viewers — their rating, reviews and evaluations
  • 30 days welcome bonus

With a robust and seamless video streaming application like netflix, you would hardly miss your favorite shows or movies pictures irrespective of whether you are at home or not. Just go through the below benefits of utilizing a video streaming application:

Access for free: You can surf and go through a video application anywhere and at any moment.

Tweak Shows: You can watch and re-watch your favorite movies and TV shows without waiting too long as these are spared in the cloud for you. Similarly, you can choose the genre or type of content which you prefer to watch.

Efficient: One doesn’t need to worry about missing a sports event or a show. The application will store everything you like.

Advertisement Free Content: Everyone prefers promotion free content, so in the case of these applications you can rest assured about the same.

Different Paying Plans: It is easily one of the best benefits of choosing a video streaming application, it allows the user to pay the fee in several installment plans.So that you can choose the most fitting plan and pay in easy installments.

Application Features:

More high-end features would lead to higher cost. It is usually recommended to go for just center highlights in version 1 of the application to minimize the cost initially. One can always add the extra features in the next version.

Design of the application:

It is important to keep structure precise and standard. A simplified structure allows users to find the content they are looking for and ensures that the user status engaged and spend more time on the application.

Portable Wallets:

It is always beneficial to include several wallets into your application. It would require initial investment to incorporate installments modes for clients however, disposing of a lot of installment can affect as well.

Location of App Developers:

The fee of app developers is different according to their geographical location. If the app developers are living in the US, then the fee would be more, in case if you choose the developer from countries like India, the costs will be staggeringly lower.

Development Team Structure:

In order to build an effective and highly scalable On-Demand Video Streaming app, the important factor will be a proficient mobile application development team. A squad of highly skilled professionals always bring forth amazing results. In order to develop an application, you would need several professionals with different skills and expertise. So below experts would be needed to build an app as good as Netflix:

  • Project Manager
  • Android and iOS Application Developers
  • Business Analyst
  • QA Professionals
  • Front-End Developers
  • Backend Developers
  • Graphic Designers

Required technology Stack to Develop VOD Mobile App

Streaming- The Developers would have to frame up the protocols so that the streaming part executes consecutively, HLS, RTSP, UDP, RTMP, TCP are the set of protocols which are required in the process. Other tools that could be used by app developers as for streaming purposes tools like Contus Vplay, Wowza SDK could be used by the app Developers.

Hosting- As far as hosting is considered one can count on Amazon Cloud Services for the same.


What could be the hurdles or Challenges in building a VOD mobile application?

Scalability: Scalability plays a very important role, as afterward the launch there will be an increase in the number of users, so the back-end architecture of the app should be scalable enough to facilitate a high number of users in real-time without any disruption.

Security: Videos are as good as sitting duck for the video pirates and hackers. In order to avoid piracy it’s always better to fetch the digital rights, , access control, encryption etc.

Flexibility: The application must be pliable enough to work on all platforms and devices be it a desktop, mobile or tablet.



However the exact cost of developing an application like Netflix can’t be predicted. Nonetheless, with the features and factors aforementioned, one can go ahead and have an estimation of the cost. A video streaming app like netflix would need lot of passion and persistence in order to achieve desired results. Though it is a very promising venture looking at the trends and it is expected to flourish more.

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